Everyone knows the credit score you carry with your name is important and needs consideration
. Then what? Do you know how to manage it or how to improve it? These are the five best ways to upgrade your credit score.
You will need to get a copy of your current credit report from all three credit reporting agencies as well as your credit score. Knowing your starting point will go a long way in knowing how far you have come. You may even be able to access a free report if you haven't ordered one in over a year.
Carefully read and check your reports for accuracy. Look for any negative information that is over seven years old. Write to each agency and list your findings for correction. The outdated items will be removed immediately and the incorrect ones will be corrected. This is something you can do to raise your score quickly.
This may seem like an obvious suggestion but it needs to be said, pay your bills on time, regularly, every month. Paying your bills on time shows creditors you are credit worthy. It also keeps your score from getting any 30, 60 or 90 day dings on it.
Two new accounts are not as valuable as one old one. So keep your older accounts in good standing and keep them open. Never close older accounts that are not hurting your report.
If you have debt accounts in good standing but they are over fifty percent of the credit limit ask the lender to increase your balance. Don't use this new balance, instead start paying that debt down until you are under thirty percent of the debt to limit ratio. Of course never exceed your credit limit.
If you apply for new credit, make sure you haven't applied for any in the two to three months prior. Lenders are concerned about new credit piling up too close together. They fear you are having difficulties with money and stay away. It also brings down your score.
Following these ways to upgrade your credit score will work. However, it will take time so be patient. Continue to keep an eye on your financial well being and you will see improvements.